All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
Japanese exports go down at a slower tempo in February
In February, Japan's exports slumped at a much slower tempo than in January, although dismal global demand as well as US-China trade clashes keep clouding the outlook.
In February, Japanese exports are anticipated to have dived by 0.9% from 2018, having decreased by 8.4% in January, which appears to be the greatest tumble for over two years.
However, imports went down at a steeper tempo of 5.8% last month having decreased by 0.6% in January.
However, Japan’s exports to Asia, in particular, shipments of IT-related stuff, are anticipated to have remained dismal.
The trade balance probably rebounded to a surplus of 310.2 billion yen from January’s deficit of 1.41 trillion yen.
Global trade has speeded down in the face of dismal European and Chinese economic surge and and as Beijing and Washington are still locked in a tit-for-tat tariff conflict that is taking a soaring toll on the Japanese export-reliant economy.
Trade data will be released by the Finance Ministry on Monday at 8:50 a.m. Japan time.
Additionally, Japan's core consumer price index, excluding volatile food costs, but including oil products, is expected to have leapt by 0.8% in February, demonstrating the same tempo as in January.
Energy bills probably backed core CPI, while gasoline prices and telecommunications put pressure.
As for core CPI, it will most probably remain lackluster for a while because tumbles in crude prices will start showing up and mobile carriers are anticipated to reduce phone charges.
On March 22 at 8:30 a.m. Tokyo time, the Internal Affairs Ministry is expected to uncover data on consumer prices.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.